Salient to Investors:
- Risks of a slowdown are alarmingly high primarily because of policy uncertainty in the US and Europe.
- Global growth will be 3.3 percent in 2012 and 3.6 percent in 2013, with a 15 percent chance of recession in the US in 2013, 25 percent in Japan, and above 80 percent in the euro area.
- Financial market stress, government spending cuts, stubbornly high unemployment and political uncertainty continue to dampen growth in high-income countries
- Emerging-market countries that fueled much of the recovery from the global recession, like China and India, have continued to cool off, with global trade slowing.
- Downside risks have increased and are considerable.
- Advanced economies, including the US and Germany, will grow 1.3 percent in 2012 versus 3 percent in 2010, and 1.5 percent in 2013.
- Emerging economies will grow 5.3 percent in 2012 and 5.6 percent in 2013.
The World Bank said more than half a billion young people are neither working nor studying.
Read the full article at http://www.nytimes.com/2012/10/09/business/global/imf-lowers-its-global-growth-forecast.html?nl=todaysheadlines&adxnnl=1&emc=edit_th_20121009&adxnnlx=1349809903-RB8Uvpkk6g+74N5hJpkKgQ